GSA awards $28.6M in administrative management consulting services to The Greentree Group, Inc

Contract Overview

Contract Amount: $28,580,728 ($28.6M)

Contractor: THE Greentree Group, Inc.

Awarding Agency: General Services Administration

Start Date: 2007-01-22

End Date: 2012-07-22

Contract Duration: 2,008 days

Daily Burn Rate: $14.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: AF LTO SUPPORT

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $28.6 million to THE GREENTREE GROUP, INC. for work described as: AF LTO SUPPORT Key points: 1. Contract awarded on a competitive basis, suggesting potential for price discovery. 2. Services fall under administrative management and general management consulting, a broad category. 3. Contract duration of over 5 years indicates a significant, long-term need. 4. Awarded as a delivery order under a larger contract vehicle. 5. No indication of small business set-aside, potentially limiting opportunities for smaller firms. 6. Services provided to the VA, suggesting a focus on government operations support.

Value Assessment

Rating: fair

The total award amount of $28.6 million over approximately 5.5 years for administrative management consulting services appears to be within a reasonable range for the scope of work. Benchmarking against similar large-scale consulting contracts for federal agencies is difficult without more specific details on the services rendered. However, the duration and value suggest a substantial engagement. The 'time and materials' pricing structure can sometimes lead to cost overruns if not closely managed, which warrants attention.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The 'full-and-open' competition suggests a robust process aimed at achieving the best value. The presence of multiple bidders generally fosters a more competitive environment, which can lead to better pricing and service offerings for the government. The specific number of bidders is not provided, but the competitive nature is a positive indicator.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery through market forces.

Public Impact

Federal agencies, specifically the VA, benefit from expert administrative and management consulting to improve operational efficiency. Services likely encompass strategic planning, process improvement, organizational development, and other management support functions. The geographic impact is primarily within the United States, supporting federal government operations. The contract supports a workforce of consultants, contributing to the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to Time and Materials pricing structure if not rigorously monitored.
Lack of specific performance metrics makes it difficult to assess the direct impact and value-for-money.
The broad nature of 'Administrative Management and General Management Consulting Services' could mask inefficiencies if not clearly defined and managed.

Positive Signals

Awarded through a competitive process, indicating potential for good value.
Long-term contract suggests a sustained need and successful past performance.
Services provided to the VA indicate alignment with critical government functions.

Sector Analysis

Administrative management and general management consulting services represent a significant segment of the professional services market supporting government operations. This contract fits within the broader IT and professional services sector, where agencies procure expertise to enhance efficiency, implement new strategies, and manage complex projects. Comparable spending in this area can vary widely based on agency size and specific needs, but multi-million dollar contracts are common for strategic consulting engagements.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses. This suggests that larger, established firms were the primary focus of this procurement. While this can be efficient for acquiring specialized expertise, it may limit opportunities for small businesses to participate in significant federal contracts and contribute to the federal supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the General Services Administration (GSA) and the specific program office within the VA that received the services. The contract type (Delivery Order) implies it was issued under a pre-existing contract vehicle, which itself would have undergone an oversight process. Transparency is generally maintained through contract databases like FPDS, though detailed performance reports may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Management and Financial Consulting, Acquisition and Technology Services
Professional, Scientific, and Technical Services
Government Operations Support Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of specific performance metrics makes value assessment difficult.
Broad service category may obscure specific deliverables and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $28.6 million to THE GREENTREE GROUP, INC.. AF LTO SUPPORT

Who is the contractor on this award?

The obligated recipient is THE GREENTREE GROUP, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $28.6 million.

What is the period of performance?

Start: 2007-01-22. End: 2012-07-22.

What specific types of administrative and management consulting services were provided under this contract?

The provided data indicates the contract falls under NAICS code 541611, 'Administrative Management and General Management Consulting Services.' This broad category typically includes services such as strategic planning, organizational design, process improvement, performance management, change management, and general management advice. Without more granular details, it's difficult to pinpoint the exact services rendered. However, given the recipient agency is the VA, the consulting likely focused on improving the efficiency, effectiveness, and management of VA programs and operations, potentially including areas like healthcare administration, benefits processing, or internal management structures.

How does the $28.6 million award compare to similar consulting contracts for the VA or other large federal agencies?

Comparing this $28.6 million award requires context regarding the contract's duration and scope. The contract spanned approximately 5.5 years (January 2007 to July 2012), averaging around $5.2 million per year. This figure is substantial but not unusual for large-scale, multi-year consulting engagements within major federal agencies like the VA. Many federal agencies procure similar management consulting services, with contract values ranging from hundreds of thousands to tens of millions of dollars annually, depending on the complexity and strategic importance of the initiative. The 'Time and Materials' pricing model, while common, necessitates careful monitoring to ensure costs remain aligned with value delivered.

What were the key performance indicators (KPIs) or success metrics for this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or success metrics for this contract. Typically, for management consulting services, KPIs might include improvements in operational efficiency (e.g., reduced processing times, cost savings achieved), successful implementation of new strategies or systems, enhanced organizational performance, or client satisfaction ratings. The absence of publicly available KPIs makes it challenging to quantitatively assess the contract's effectiveness and the true value derived by the VA. Rigorous performance management is crucial, especially with Time and Materials contracts, to ensure objectives are met within budget.

What is the track record of The Greentree Group, Inc. with federal contracts, particularly with the VA?

The Greentree Group, Inc. has a history of federal contracting, as evidenced by this $28.6 million award from the General Services Administration (GSA) for the VA. While this specific contract indicates a significant engagement, a comprehensive assessment of their track record would require examining their entire federal contract portfolio. This includes looking at the number of contracts awarded, their values, the agencies served, contract types (competitive vs. sole-source), performance ratings (if available), and any past performance issues or disputes. Their ability to secure a multi-year, multi-million dollar competitive delivery order suggests a level of capability and past success recognized by the government.

What are the potential risks associated with a 'Time and Materials' contract for consulting services?

Time and Materials (T&M) contracts, like the one awarded to The Greentree Group, Inc., carry inherent risks, primarily related to cost control. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. The main risk is that costs can escalate beyond initial estimates if the scope of work is not well-defined or if the project takes longer than anticipated. This necessitates robust government oversight to monitor labor hours, ensure efficient work practices, and validate the necessity of all materials. Without diligent management, T&M contracts can lead to cost overruns and potentially less value for taxpayer money compared to well-defined fixed-price contracts.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1360 TECH CT STE 100, DAYTON, OH, 45430

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $30,064,508

Exercised Options: $28,909,233

Current Obligation: $28,580,728

Parent Contract

Parent Award PIID: GS10F0363K

IDV Type: FSS

Timeline